World Liberty Financial's USD1 Stablecoin Loses $400M in Market Cap
USD1's market capitalization has dropped by approximately 9% over two weeks amid significant redemptions on Ethereum and BNB Chain.
USD1's market capitalization has dropped by approximately 9% over two weeks amid significant redemptions on Ethereum and BNB Chain. Ethereum (ETH) is trading at ₹2,29,049 ($2,406.36), up 0.7% since this brief published. This is an original Token Times brief synthesising 2 outlets (Crypto Economy, Cointelegraph), with their figures cross-checked, plus live market data, as of Mon, 19 Oct 2026 15:15:01 UTC.
The substantial decline in USD1's market cap, driven by large redemptions across major blockchains, raises questions about investor confidence and the stablecoin's resilience. This development could impact broader market sentiment and the stablecoin's future adoption.
- USD1 market cap fell by $400M in two weeks, now at $4.03B (DeFiLlama).
- Ethereum and BNB Chain saw $385M in redemptions, with a single address redeeming $200M on BNB Chain.
- Stablecoin maintained its dollar peg despite the market cap decline.
Crypto Economy and Cointelegraph both report that USD1's market capitalization dropped by approximately $400 million over two weeks, with redemptions totaling around $385 million across Ethereum and BNB Chain. However, Cointelegraph emphasizes the overall decrease in market cap, while Crypto Economy provides more granular detail on the specific blockchain redemptions and the role of a single large address redeeming $200 million on BNB Chain.
World Liberty Financial's 
USD1 stablecoin has experienced a significant decline in market capitalization, dropping from $4.43 billion to $4.02 billion over a two-week period, according to data from DeFiLlama. This represents a decrease of approximately 9.1%, as corroborated by multiple outlets.
The decline in USD1's market cap is attributed to substantial redemptions on both the 
Ethereum and 
BNB Chain networks. Combined, these platforms saw around $385 million in redemptions, with a single unidentified address on BNB Chain redeeming nearly $200 million, as reported by Crypto Economy.
Despite the significant reduction in market cap, USD1 has maintained its dollar peg throughout the period analyzed. This suggests that the stablecoin's underlying mechanisms remain intact, even as investor withdrawals have impacted its overall size.
The broader market context shows a relatively stable crypto market, with 
Bitcoin up 0.72% in the last 24 hours and the overall market cap at $2.8 trillion. Ethereum and BNB, the two blockchains most affected by the redemptions, have seen modest price movements, with ETH at $2390.12 and BNB at $725.37.
The development highlights the ongoing volatility and investor sentiment in the stablecoin market. It remains to be seen whether USD1 can regain its lost market cap or if this is indicative of a larger trend in stablecoin adoption and usage.
Since this brief published about 2 hours ago, Ethereum (ETH) has moved from ₹2,27,503.37$2,390.12 to ₹2,29,049.17$2,406.36 — +0.68%.
The chart plots ETH's price: grey is the move before this brief published, the vertical dashed line marks the moment it published, the horizontal dashed line is the price then, and the coloured area is the move since — from Token Times's market data (daily resolution). It shows what happened after the news, not that the news caused it; many factors move prices. Not financial advice.
At today's peer-to-peer rate, 1 ETH ≈ ₹248,962.01 (about $2,406.36), up 1.2% over 24 hours. The rupee itself trades about 8.7% above the official rate on the P2P market, so a Indian buyer's effective cost differs from the headline dollar price.
Live market data
Current prices for the assets in this story — live, source-stamped, updated every 15 minutes.
1 key figure independently matched across 2 outlets reporting this story.
Token Times extracts the figures each outlet reports and flags the ones that agree. Numbers cited by only one outlet are attributed in the brief, not shown as corroborated.
Figures and sectors in this story, checked live against on-chain aggregators · October 19, 2026.
Token Times reads these figures directly from on-chain aggregators (DeFiLlama, mempool.space) at build time — independent of what any outlet reported. Sector totals aggregate every protocol DeFiLlama tracks in that category. Values are live and will change.
World Liberty Financial's USD1 Stablecoin Loses $400M in — questions & answers
What caused the USD1 market cap decline?
Large redemptions on Ethereum and BNB Chain, including a $200M redemption by a single address on BNB Chain.
Did USD1 lose its dollar peg?
No, USD1 maintained its dollar peg despite the market cap decline.
How does this impact the broader crypto market?
The impact is minimal so far, as the overall market remains stable, but it raises concerns about stablecoin stability.
How much is 1 Ethereum worth in rupee today?
About ₹248,962.01 at the live peer-to-peer (P2P) USDT rate, which is what Indians typically trade at — equivalent to roughly $2,406.36. The rupee price moves with both ETH's US-dollar price and the USDT/INR rate; use our Ethereum in rupee page for any amount.
Has Ethereum's price moved since this brief was published?
ETH is up 0.68% since this brief first published — trading at ₹2,29,049 ($2,406.36) now versus ₹2,27,503 ($2,390.12) at publication. Token Times re-checks this figure against CoinGecko and Binance every 15 minutes.
Which outlets reported this story?
This is an original Token Times brief that synthesises reporting from Crypto Economy, Cointelegraph, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original Token Times brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.